CoreWeave closes $650 million secondary share sale at $23 billion valuation
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By Arsheeya Bajwa and Krystal Hu
Nov 13 (Reuters) - AI cloud platform operator CoreWeave said on Wednesday it closeda $650 million secondary share sale to investors, a deal that a source familiar with the matter said more than tripled the company's valuation over the past year to $23 billion.
The investors wereled by Jane Street, Magnetar, Fidelity Management and Macquarie Capital, and the higher valuation illustrated growing interest in the business of cloud infrastructure for generative artificial intelligence.
CoreWeave provides access to data centers and high-powered chips for AI workloads, mainly from its backer and AI bellwether Nvidia NVDA.O.
In the secondary stock sale, existing investorssold their holdings to new investors. The source familiar with the matter said the$23 billion valuation was up from $7 billion about a year ago.
CoreWeave was valued at $19 billion in May aftera $1.1 billion Series C investment led by private equity firm Coatue, a source said at thattime.
The secondary sale demonstrates Wall Street investors' interest in taking stakes in hot AI companies before they go public. CoreWeave is considered a candidate for an IPO next year.
Demand for services like CoreWeave's, which make increasingly sophisticated generative AI applications possible at scale,has sky-rocketed since the launch of OpenAI's ChatGPT in late 2022.
CoreWeave competes against cloud computing service providers such as tech giant Microsoft's MSFT.O Azure and Amazon's AMZN.O AWS.
New Jersey-based CoreWeave said investors inthe latest stock sale included Cisco CSCO.O Investments, Pure Storage PSTG.N, BlackRock BLK.N, Coatue, Neuberger Berman and others.
Morgan Stanley and Goldman Sachs advised CoreWeave.
Funding for private AIand cloud companies in the U.S., Europe and Israel is rising after three years of decline, and the 2024 amount isestimated to hit $79.2 billion by the end of the year, venture capital firm Accel said in October.
Reporting by Arsheeya Bajwa in Bengaluru; Editing by Vijay Kishore and Cynthia Osterman
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